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FAQs
Read below for answers to the most commonly asked questions. Please contact us with any other questions.
FREQUENTLY ASKED QUESTIONS
ANGELS FAQs
BizBuyAngels™ is a national network of accredited investors funding the next wave of entrepreneurs — those who buy first, then build. We connect angel capital with exceptional entrepreneurs targeting proven, cash-flowing businesses in need of new ownership and poised growth.
Traditional angel investing focuses on 10x returns from early-stage startups with high risk, long exit horizons and a very high failure rate. Historically, these angel investors filled the financing need of early-stage entrepreneurs that traditional VC firms avoided. BizBuyAngels™ is flipping the script on traditional angel investing to fill the growing financing need of acquisition entrepreneurs who seek to buy and build profitable, operating businesses — combining the excitement of entrepreneurship with superior risk-adjusted returns, defined exit timelines, real assets and real impact for investors, employees, communities and entrepreneurs.
Our investment thesis is designed to generate a 20% IRR over a 5-year horizon on active, deal-specific investments. Typically, angel investors can expect quarterly distribution of principal and interest (equal to about 60% of the total annual IRR) and 40% from a small equity position that is repurchased by the company when the loan matures in 5 years.
Investor funds are administered on a deal-by-deal basis via a Series LLC that pools angel investor capital to finance business acquisitions through the investment manager, a wholly owned entity of BizBuyAngels. The acquisition loan is serviced by Jumpstart Finance and underwritten by Little Horn State Bank, an FDIC insured and regulated bank with a $300MM+ loan portfolio. Angel investors purchase these institutionally underwritten acquisition loans that are originated by BizBuyAngels via its sponsor bank. Jumpstart Finance ensures investors receive quarterly distributions of principal and interest, plus potential equity upside at recap or sale.
Yes. You can participate in individual opportunities that align with your expertise and interests or invest passively in the pooled credit fund for diversified exposure.
We focus on profitable, established U.S. companies with $5MM–$25MM in revenue and $1MM+ EBITDA, clear succession potential, and opportunities for modernization or operational improvement.
We’re lighter, faster and more flexible. You choose which investments you want to make. You partner with growth minded entrepreneurs who are focused on buying and building strong, resilient companies that are poised for growth — and skip the institutional roll-ups and heavy management fees. Think “Private Equity Light,” with an angel investing mindset.
Submit an online application, meet our accreditation requirements, attend one introductory meeting, and get connected with upcoming deal reviews and opportunities.
ENTREPRENEURS (BUYERS) FAQs
BizBuyAngels™ connects acquisition entrepreneurs with flexible, non-SBA funding from private angel investors — experienced partners who understand business ownership, transitions and driving growth.
Unlike SBA loans, BizBuyAngels™ offers faster approvals, simpler underwriting, and fewer personal guarantees.
While rates may be somewhat higher, we deliver:
Speed: Close in weeks, not months.
Flexibility: Creative structures including seller notes or earnouts.
Support: Angel investors who care about your success, not just your credit score.
Partnership: You gain funding plus a built-in network of mentors.
Opportunity Cost: Waiting for a lower-interest SBA loan can cost more than you save. Closing your acquisition sooner often earns enough cashflow to outweigh the interest rate difference
No. Traditional search funds raise capital to engage an acquisition entrepreneur / searcher to spend one or two years searching for a business before raising more capital to acquire it. BizBuyAngels™ works with entrepreneurs who are ready to buy now — we provide direct funding for the acquisition of proven, cash-flowing businesses. Our approach is faster, more hands on, and ideal for operators who want to own and grow immediately. We also require significantly lower levels of equity participation than most search funds.
They’re accredited investors from around the U.S. — successful entrepreneurs, executives, and private equity veterans — looking for meaningful, lower-risk opportunities that support business ownership and community growth. Angels look for high potential business that can grow with the right leadership and support.
Yes. Unlike traditional bank financing, through our Angel Accelerator Program, you gain mentorship, strategic guidance, and a structured First 100 Days Plan to help you stabilize operations, digitize processes and position the company for scalable, sustainable growth.
A small equity position goes to the investor group, aligning everyone’s interests. After about five years, you can buy out this equity through recapitalization or refinancing.
We typically support acquisitions of U.S.-based, profitable businesses with:
$5MM–$25MM in annual revenue
$1MM+ or 20% EBITDA
5+ years operating history
Clean financials and transferable operations
We work with experienced, growth-minded, hands-on entrepreneurs — often mid-career professionals or small business operators — who are ready to step into ownership and build on proven success.
SELLER / BROKERS FAQs
BizBuyAngels™ is a funding platform fueled by a new, emerging angel investor network that helps brokers and business sellers close deals faster by connecting qualified buyers with flexible, non-SBA capital.
We help get your deals funded quickly — offering buyers streamlined approvals, customized structures, and confidence to close. For brokers, that means fewer stalled deals and faster commissions.
We typically support acquisitions of U.S.-based, profitable, lower-middle-market businesses, with:
$5MM–$25MM in annual revenue
$1MM+ or 20% EBITDA
5+ years operating history
Clean financials and transferable operations
10% buyer downpayment and modest seller note preferred
Yes. We can review listings with documented diligence (typically financials, CIM and a business valuation or broker's opinion of value). We establish shared data rooms with you to assess funding eligibility and, if qualified, you can mark your listings as “Funding-Ready,” increasing visibility and buyer interest.
Think of us as an SBA alternative — faster, more flexible and focused on opportunity, not bureaucracy. We fund strong, cash-flowing businesses that meet our lending and investor criteria, without the red tape and onerous restrictions of traditional bank lending.
Seller finance depends on the seller. We depend on institutional-grade systems, investor confidence, and a streamlined process designed to help entrepreneurs acquire and grow businesses with speed, clarity, and security.
We’re a faster, more reliable alternative to seller financing. Instead of relying on the seller’s willingness or informal terms, we provide:
Speed & Flexibility – Quick funding for strong, cash-flowing businesses.
Institutional-Grade Underwriting – Professional standards that protect both investors and operators.
FDIC Bank Sponsorship – Transactions backed by trusted banking partners.
Managed Payments – Ongoing servicing handled with transparency and efficiency.
Submit your listing for early review (pre- or post-LOI is fine).
We assess the deal’s eligibility and buyer fit.
You refer your buyer or prospective buyers to us for qualification.
We handle all underwriting, documentation, and funding — you close faster.
Your client gains access to a pool of qualified, funded buyers and faster time-to-close — often at full valuation. Buyers are funded by angel capital that is ready to deploy, without SBA-related delays or last minute denials.
No — we only participate through a small share in the funded deal. Brokers keep their full success fee at closing. We do not pay broker referral fees.